Wilson & Horton Holdings, the New Zealand newspaper group owned by Independent News & Media, has recorded a 46 per cent rise in profit before exceptionals, to 18.87 million New Zealand dollars (£7.37 million) from NZ$12.94 million (£5.16 million), in the six months ended June 30th, 1999.

There was an exceptional gain of NZ$159.35 million due to foreign exchange gains, partly offset by foreign exchange losses, compared with an exceptional loss of NZ$57.4 million. That led to a profit before tax of NZ$178.2 million compared with a loss of NZ$44.47 million.

The results were described as "very encouraging" by WHH's chairman, Mr Cameron O'Reilly, "as advertising revenues began the year below the previous year, following the slowdown in the New Zealand economy, which progressively affected trading over the second six months of 1998 and continued into the first quarter of 1999".

Trading profits, he said, were down in the first quarter. However, they have since "bounced back strongly in the second quarter and are continuing to strengthen". The major cost reductions implemented at the end of 1998 "were on track to deliver the full-year savings as projected in March".

Sales of the continuing activities were virtually static at NZ$209.9 million. But Mr O'Reilly said revenues showed a considerable uplift over the last few months with current revenues well up on 1998.

Circulation revenue was static, he said, and "getting circulation is a major focus". Around 80 per cent of revenue comes from advertising, with 20 per cent from circulation.

The New Zealand Herald has continued to gain market share "in the competitive national display advertising market, and recent increases in market share in the motoring, employment and real estate sectors will enhance revenues in the second half".

The group noted that economic indicators suggest the New Zealand recession is over and the economy will grow by at least 23 per cent a year for the next few years "as improvements to commodity prices, consumer confidence and the resurgence in Asian demand underpin a strong recovery".

"With revenues trending well, costs markedly down and market shares rising, the company is very well positioned," Mr O'Reilly said.